Hamas won 2006 parliamentary elections but Palestinian President Mahmoud Abbas’ Fatah and much of the international community refused to accept the result, leading to increased strife.

A year later, Hamas violently seized control of Gaza.

Since then, two separate civil administrations emerged.

The PA kept on its payroll tens of thousands of employees who stayed home but still claimed their salaries, while Hamas employed tens of thousands to replace them.

This and the as yet unresolved future of Hamas’ vast armed wing are the two key issues that have derailed previous reconciliation bids.

“They were trying to negotiate the issues over time in order to build a sense of trust, but these issues – the employees and Hamas’ standing army – are the biggest hurdles, and it’s clear they haven’t surpassed them,” said Grant Rumley, who focuses on Palestinian politics at the U.S. think tank the Foundation for Defense of Democracies.

Since October, Hamas has largely stopped paying its staff, saying it is the responsibility of the PA under the agreement while last year PA staff have had their salaries cut by 30 percent.

Thirty-year-old Bashir Amer, who works at the Hamas-run Education Ministry, said he was struggling to care for his family.

“They give us 1,000 shekels ($300) and it is not enough to eat and drink,” he said.

Hugh Lovatt, Israel and Palestine coordinator at the European Council of Foreign Relations think tank, said Egypt’s Fawzy “had really been driving this process.”

“It is unclear whether Egyptian sponsorship of the ongoing reconciliation process, which has been critical, will continue in his absence.”

Meanwhile Hamas, which remains heavily armed, has appointed former military figures to senior roles in the past year, most notably former military leader Yahya Sinwar, who became its chief Gaza.

Fears have grown that Hamas, which has fought three wars with Israel since 2008, could opt for war again, Rumley said.

“My sense is that Sinwar and the rest of the military faction do not want a war now because they’re focused on ameliorating the situation, primarily through reconciliation talks,” he said.